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New Buisness within Reverse Logistics / Cost Benefit Analysis - Research Paper Example

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As companies strive to make profit from every cent of their logistics cost, there is an increasing interest in the area of products returned through the supply chain (Dyckhoff et al, 2004). These include reusable products as well as a better waste disposal management system. As…
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New Buisness within Reverse Logistics / Cost Benefit Analysis
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Download file to see previous pages My company intends to change this as it will purchase the re-usable plastic containers, rent them to the suppliers and create a partnership with the distributors and manage the reverse logistics. This arrangement will save the manufacturers 15% on packaging costs, get rid of underutilized freight by up to 30% and at the same time significantly reduce waste disposal costs for restaurants.
The main target at first will be the manufacturers and processors of food who supply quick service restaurant chains. This is a strong and positive starting point since the market features several attributes that will make the adoption of such packaging containers very valuable and feasible. They include concentrated distribution, frequent deliveries emphasizing on margins and efficiency. So as to divert substitution by corrugated cardboard, New line will require to incentivize all those involved in the supply chain. The highest benefits will be experienced by the manufacturers since there will be reduced packaging costs and reduced product damage. The distributors on the other hand will generate a new revenue stream while the restaurants will enjoy reductions in packaging waste and as such reduce their disposal costs.
New line’s short term goal is securing a customer and this service in the customer’s supply chain. This therefore will require $25,000, with $10,000 from the founder and the remaining amount from two investors. The company’s one year plan is to rent a facility that will facilitate a washing line with a capacity of three million box cycles annually. Once New line has proven that this system will reap substantial economic benefits, plans to build our own washing facilities will be in line. The company will require further funding from value added growth investors and once two facilities are established, the company ...Download file to see next pagesRead More
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